Blockchain has several main features, one of which is constant updating to improve the network and secure transactions.
However, blockchain is not a complete network by itself and many developers are constantly trying to solve its problems. Polkadat entered to change the blockchain network system and continued to increase the purchase.
The DOT network is actually a multichain and its purpose is to connect different specialized blockchains to a single network. All blockchains that connect to DOT operate in parallel.
This parallel function is called parachain and the token that can be traded in the cryptocurrency market is called dot. Polkadat currency is very important because its ultimate goal is to improve the blockchain network.
Let’s check out together:
- Why Polkadot is important?
- History of Dot currency
- Polkadot and its effect on web3
- Polkadot currency analysis
Why Polkadot is important?
Blockchain developers struggle with many problems to create innovative and decentralized systems. The reason for these problems is the complexity of blockchain, which forces developers to design systems from the ground up.
At the same time, Polkadat’s goal is to provide a way for developers to do something else instead of spending money and time on design. The goal is for developers to implement all the models they have already designed on all blockchains.
Another reason that shows the importance of Polkadot is the problem of governance and scalability of the blockchain network.
The number of transactions that a network can perform in one second is called scalability, and governance is the ability to make changes within protocols and manage the network.
The currency called DOT has entered the cryptocurrency market precisely for the purpose of solving the mentioned problems and creating a positive change.
History of Dot currency
In order to understand the importance of polkadot, it is better to learn a little about the history of this currency.
Dot is the result of the thoughts of Dr. Gavin Wood, who is one of the founders of Ethereum. He is also the inventor of Solidity which means smart contract language.
Work on an idea called the Ethereum Shredded version by Dr. Wood began in mid-2016. He published the first draft of the white paper in October 2016, although a year earlier he had founded a company called Parity Technologies with Jota Steiner. The goal of this company was to implement various projects on the Ethereum platform.
After that in 2017, Dr. Wood together with Peter Zaban founded the foundational language called Web3.
Web 3 is actually a non-profit organization that was established to support the research and development of Polkadat. Of course, there was another purpose for the establishment of this institution, and that was to monitor the collected donations. The foundation is based in Switzerland, which also conducted the first token sale of the Polkadat currency in October 2017.
This sale was done through an auction in the Netherlands called Spend-All Second Price. In less than two weeks, 145 million dollars were obtained through this auction.
Also, 50% of the initial supply, something around 10 million Dot, was sold. After this auction, Web 3 Foundation chose Parity Technologies to develop Polkadot.
Polkadot and its effect on web3
Many experts criticize Web 2 and their reason is that it is too centralized, and they also have claims about it.
These experts claim that Web 2 has caused various types of irrational advertising, mass surveillance, reduced privacy, excessive focus on profit, and widespread data theft.
Token dot solves the problem of scalability by parallelizing transactions, because this problem in blockchain has prevented its progress and development so far.
This digital currency has an open and advanced governance system that allows the network to follow innovation at a high speed. Applications that exist on the blockchain, such as decentralized energy, finance or communication and games, are developed on Polkadot.
They form the basis of digital jurisdictions within Web 3. Finally, you should know that Polkadot is the first project led by the Web 3 Foundation.
Polkadot currency analysis
On November 1st, according to what is mentioned in Polkadot’s shopping guide, we saw an increase in the volume of purchases in the markets.
After that, Token dot finally went to record a new price rate and $53 was recorded for it. According to reports, the Polka Dot runtime was upgraded to v9122 on November 4th. This upgrade allows dot developers to register within parachains.
According to other reports, Polkadot currency has scored and completed 12 new projects. There are also 9 projects that will be completed in the future and are in the validation phase. This means that with the completion of projects, the way for developers will be smoother than before.
According to the surveys conducted on the market in recent months, we saw the multiple growth of this cryptocurrency.
This growth was such that in early September, its price was at $27, and recently its price has reached about $40. This cryptocurrency has ambitious goals for the future of blockchain, and if these goals are realized, a bright future can be imagined for it.
In this article, we discussed the importance of Polkadot and how much it can have a positive effect on the future of blockchain and improving its path.
With the conditions that prevailed in the blockchain, developers have concerns about its progress. They think they have to change the infrastructure from scratch, and that can be difficult.
But Dot came to the field and pursued the goal of solving the governance problem. It also solved the scalability problem in this space. In fact, this currency is designed to make changes in protocols and network management and improve it.
Finally, this currency has had a good price growth after being presented in the market, and a good future is expected for it. Users can invest in its bright future by checking the reports and status of this currency in the market.